Research & Guides
Sponsored by State Street Global Advisors
Strategic short-term cash is a tricky concept. Some organizations struggle to designate strategic cash, while others have questions about how to handle it. This guide grapples with defining strategic cash, determining an investment policy, and navigating the risks involved with this particular type of cash.
Sponsored by Nordea
New regulations affect corporate clients, as they can alter the availability and relative cost of different banking
products. In this
guide, we review a series of recent, ongoing and prospective regulatory changes to understand how they affect corporate
treasury practitioners. We then take this information and examine how practitioners can use these changes to effect
improvements to their core cash and trade practices.
The 2014 gtnews Investment Strategy Survey, underwritten by State Street Global Advisors, examines the investment strategies organisations are employing, as well as the impact of recent regulations on day-to-day operations. The survey also assesses the following:
- Short-term cash holdings currently placed in bank products
- Guidelines and information resources used to assess bank partners
- Importance of risks in evaluation
In the 2014 TMS Buyers Guide, multiple vendors have contributed their experiences and views of the current technology marketplace. They have also supplied their analysis of the major trends that will continue to influence technology choices into 2015. This guide also features tips on finding the right technology partner in today’s environment, general guidelines on how to select and implement a treasury management system (TMS), and we compare and contrast TMS and enterprise resource planning (ERP) systems.
The 2014 gtnews Transaction Banking Survey
gauges organisations’ level of satisfaction with transaction service
providers. While corporate
practitioners are, on the whole, satisfied with their bank partners’ services,
it is evident from the survey results that they feel their banks could do
more. As organisations expand both
regionally and globally, they are increasingly more discerning. Going forward,
they will have higher expectations from their banking partners. The playing
field is large and banks will have to focus on enhancing the delivery of their
offerings to retain their competitiveness. Additionally, the survey assesses the following:
- Number of bank relationships maintained.
- Factors considered when selecting banking partners.
- Banking channels and access preferences
Financial performance is closely monitored by senior managers and shareholders, resulting in greater visibility of financial analysis and reporting procedures than ever before. This has caused many organisations to question whether their FP&A staff are equipped with the appropriate technology and resources to operate efficiently. This gtnews study assesses the state of the technology systems in use around the world today, including:
- Technology systems deployed at organisations and the effectiveness of these systems
- Extent of Excel spreadsheet usage
- Barriers to investment in FP&A systems
- Attributes of an ideal FP&A system
When the 2013 gtnews SWIFT Buyer’s Guide was published, two-thirds of corporates still favoured SWIFT Service Bureaus (SSBs) for their connectivity needs. With Alliance Lite2 (AL2) catching on in a big way, those numbers have changed. SWIFT discusses this paradigm shift, as well as its initiative to position itself as central to treasury operations. Topics discussed in this guide also include:
- SWIFT’s new Know Your Customer (KYC) Registry
- Case studies on SWIFT implementation from Vanguard and BBC
- A review of the benefits that the BPO offers to corporate treasurers
- Corporate adoption of eBAM
- An interview with SWIFT about regulatory fragmentation
This guide aims to support treasury practitioners tasked with investing short-term surplus cash. While most companies have varying cash balances over the course of a year, treasurers can consider cash as falling into three separate categories for investment purposes: Operating cash, short-term strategic cash and longer-term cash. The focus in this guide is on investing the operating cash used to finance working capital. Topics examined include:
- Reviewing existing policies and processes, as well as designing new ones
- Key elements to include in a standalone short-term investment policy
- Points to cover when developing investment management procedures
The transaction banking services industry is continually changing, as are the needs of treasury departments. Years after the financial crisis, examining counterparty aspects remains as important today as it ever was. This gtnews study examines organisations’ level of client satisfaction with their transaction services providers. Among the key areas explored in this report are:
- Factors in selecting a bank: From the availability and quality of services provided to the financial stability of the financial institution.
- The impact of mobile services in a compa¬ny’s decision-making process –While three-quarters of financial institutions offer mobile service solutions to their corporate clients, companies place a greater value on services other than mobile solutions when selecting their banking partners.
- Possible areas for improvement –data on the greatest opportunity to improvement; including, standards harmonization, access to real-time data and improved integration between systems and multi-banking partners.
The annual gtnews Treasury Risk survey looks at the changing landscape of corporate risk management from the treasury/finance professional’s perspective. The survey provides up-to-date insight on evolving risk attitudes and practices while presenting a framework for a holistic, integrated approach to managing risk. Data for 327 respondents is analyzed by organization size (revenue) and region on topics including:
- Risk identification and quantification – insight on treasury’s role in managing key business, operational and financial risks through use of scenario, sensitivity and “at-risk” analyses.
- Risk strategy and policy – information on the most common risk objectives, organizational structures, and role responsibilities as well as trending for newly managed risk classes, risk attitudes and risk mitigation efforts.
- Process and execution – data on common risk systems/solutions and the top day-to-day challenges and opportunities for risk management.
The annual gtnews Payments survey explores how payments are made and received around the world by focusing on payments structure, banking relationships, methods of payments and payments services. The survey offers insight into the changing payments landscape, including the use of SEPA services and mobile payments methods. Data for 284 respondents is analyzed by organization size (revenue) and region on topics including:
- Payments structure – information on the number of bank relationships and payments systems used along with usage of payments factories/shared services centres and payments-on-behalf-of models.
- Methods of payment – commonly used and accepted payments methods and emerging trends mobile payments and SEPA direct debits.
- Payment services – insight on SWIFT and SEPA service usage and adoption. Also discusses e-invoicing and mobile authorization.
The annual gtnews Treasury Management Systems (TMS) survey examines TMS usage, acquisition and integration as well as benefits and challenges with the systems. The survey offers insight into how TMS support treasury professionals in their daily responsibilities. Data for 506 respondents is analyzed by organization size (revenue) and region on topics including:
- Usage of TMS – trends in adoption of TMS, including selection processes, implementation time and challenges faced.
- TMS integration – compatibility features and challenges for interfacing with ERP and linking hubs.
- TMS benefits and challenges – effectiveness ratings from users, views on TMS integration and potential areas for product improvement.
The gtnews Cash Management and Trade Finance survey examines methods and standards affecting cash management and its integration in trade finance. The survey analyzes the effects of regulation and the macro economy on the business decisions of treasury and finance departments. Data for 135 respondents is analyzed by organization size (revenue) and region on topics including:
- Cash management activities – trends in liquidity structure and cash concentration, common barriers to accurate cash flow forecasting, short-term deficit and surplus management.
- Treasury’s role – separate and shared responsibilities of treasury and finance departments for integration of cash management, trade finance and other activities.
- External effects – impacts of regulations such as Basel III and the Eurozone crisis on financial decisions for Treasury departments.